There are few investment opportunities that are less “Hassle-free” than owning triple-net leased properties. A triple-net lease property is a commercial property that is leased to a business with strong credit. According to the terms of the lease, the tenant is responsible for the payment of the rent “net” of all expenses. This means your tenant has guaranteed you a fixed income stream with no variation because their rent paid to you is AFTER all of the expenses have been taken out. Your tenant pays all of the expenses AND pays you pre-agreed rent as well. Thus $1 of NNN rental income is substantially better for a landlord than $1 of gross rent.
The term “triple-net” refers to the expenses paid by the tenant that in residential real estate would be paid by the landlord. Triple net is usually written with the shorthand – NNN leased. The three “nets” refer to (1) Taxes (2) Insurance (3) Maintenance. A NNN leased property can have vacancy and management expenses which should be factored into the true return offered by the property and the tenant.
If you are looking for the ultimate in Hassle-free Cashflow, NNN leased properties are the way to go!
There are a handful of ways for an investor to accomplish ownership of a NNN leased property:
(1) Whole Ownership – this is the simplest method of ownership because you put up all of the money and your name (or entity’s name) is on the deed for 100% of the ownership of the property. You have all of the benefits, risks, and responsibilities that come with owning and managing the property. While owning NNN properties is Hassle-free over the long haul, it does take a substantial amount of education and team support to help you get into and out of these properties successfully. There are a lot of unseen pitfalls in NNN lease properties that require the guidance of a skilled team. We are happy to be the team of experts of guide you towards generations of successful passive income!
(2) Partnership – owning part of a NNN leased property lowers the barrier of entry for investors and allows you to own a higher quality asset. Would you rather have 100% of a small pie or 25% of a big pie? It really depends on your personal investment philosophy. Pooling the resources of your family and friends is a great way to own more real estate, but it also comes with the added challenge of being in business with other people. The team at Hassle-free Cashflow are experts at helping our clients put together active partnerships for the acquisition of real estate.
(3) Syndication – owning shares in a privately held company that owns NNN leased properties can be a great way to “earn while you learn”. Putting together groups of passive investors for the purpose of buying NNN leased properties can be very lucrative, but it is also fraught with many pitfalls such as compliance with the Securities and Exchange Commission (SEC), investor relations best practices, and disclosure requirements. Owning membership interest in a syndication (group investment) is often a great way to deploy your retirement funds (IRA, 401k, etc.) or to acquire the benefits of leverage without having to sign your name on a loan. Whether you would like to participate in the ownership of NNN leased properties as a passive investor, or whether you would like to assemble your own investors to fund the acquisition of a property, the team at Hassle-free Cashflow can help guide you through the fundraising process, creation of a Private Placement Memorandum (PPM), as well as real estate acquisition and due diligence services. We give our investors access to high quality “off-market” properties (we guarantee you WON’T find our deals on LOOPNET), financing relationships, and proprietary deal structures you won’t find anywhere else.
For more information about generating cashflow from NNN Leased Properties, please email NNN@HasslefreeCashflowInvesting.com or call (866) 931-9149 Ext. 1 to schedule an appointment with real estate investment counselor David Campbell.